FOREX: CBN Directs Banks to Sell at N360, Sells to Banks at N357 - EazyFeeds

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Monday 27 March 2017

FOREX: CBN Directs Banks to Sell at N360, Sells to Banks at N357

The Central Bank of Nigeria (CBN), on Monday said it would sell dollars to banks at N357 and direct them to sell to their customers at N360 with immediate effect. The apex bank, however, said the new rate would be for only customers’ basic travel allowance, school fees and medical treatment.

In a statement issued in Abuja, the bank’s acting Director, Corporate Communications, Mr Isaac Okorafor, said 100 million dollars had been offered to authorised FOREX dealers to meet the requests of genuine customers. He further said all banks had also been directed to immediately post the new rate on electronic display boards in the banking halls of their branches.

Okorafor said that examiners from CBN would visit banks to ensure the new rates were implemented, with immediate effect. The CBN spokesmen reiterated the bank’s directive to all banks to process and meet the demand for Travel Allowances (TA) by end-users within 24 hours of such application. He also said that applications for school fees and medical bills were to be approved by banks, within 48 hours of such application. Okorafor stressed that the new move was aimed at further easing access of genuine end-users of FOREX and prohibiting banks from selling foreign exchange funds meant for invisibles to Bureau De Change (BDC). According to him, all banks will receive amounts commensurate with their demands per week, which will be sold to customers who meet the basic documentary requirements-visa and flight ticket. He, therefore, urged customers to report any erring bank to CBN for investigation and appropriate sanction.

Meanwhile, the naira continues to appreciate against the dollar at the black market, selling at N375 to a dollar, N420 to a Pound Sterling and N405 to one Euro. A FOREX operator in Abuja, who did not want his name mentioned, urged CBN to lower the price it was selling to BDCs as well before the next bid on Thursday. According to him, this is necessary to ensure level playing field for all foreign exchange dealers. Newsmen report that CBN sold to BDCs at N390, expecting them to sell to end-users at N400. However, analysts said that with the current crash in prices, this might no longer be visible.

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